Requirement 1. Select the three internal control weaknesses revealed in the given data.

A.

The sum of the petty cash tickets exceeds the imprestbalance, indicating that the petty cash asset has not been properly safeguarded.

B.

Petty cash ticket no. 46 is missing. There is no indication of what happened to this ticket. The company should investigate.

C.

Petty cash ticket no. 47 does not indicate which account to debit on the actual ticket. If C. Sheen or Kelley Matton do not remember where the $ 42 went, then the accountant will not know what account should be debited.

D.

The fund custodian should not authorize petty cash tickets. Since KM authorized three of the four petty cashpayments, a separation of duties issue exists.

E.

The petty cash custodian (KM) did not sign petty cash ticket no. 45. This omission may have been an oversight on her part.However, it raises the question of whether she authorized the payment. Both the fund custodian and the recipient of the cash should sign the petty cash ticket.

Requirement 2. Journalize the followingtransactions:

a. Establishment of the petty cash fund on January 12, 2018.

b. Replenishment of the fund on January 31, 2018. Assume petty cash ticket no. 47 was issued for the purchase of office supplies

Requirement 3. What is the balance in the Petty Cash account immediately beforereplenishment? Immediately afterreplenishment?'

The balance in the Petty Cash account immediately before replenishment is

The balance in the Petty Cash account immediately after replenishment is